Search

Jaguar-1 Well Encounters Light Oil but Ended Early and Plugged for Safety Reasons

(TSX-V | OYL)

TORONTO, July 16, 2012 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX" or
the "Company") announces, along with its partners on the Jaguar-1 well
located on the Company's 25% owned Georgetown Petroleum Prospecting
License ("PPL"), that drilling operations at the Jaguar-1 well on the
Georgetown PPL, Guyana have ended and the well will be plugged at a
depth of 4,876 metres without reaching the primary objective in the
Late Cretaceous geologic zone. The decision to stop drilling at this
point was unanimously agreed by all partners based on safety criteria
and was taken after reaching a point in the well where the pressure
design limits for safe operations prevented further drilling to the
main objective. Jaguar-1 was a high pressure, high temperature (HPHT)
well which was spudded in February 2012 using the Atwood Beacon jack-up
rig. Whilst the primary Late Cretaceous objective was not reached,
samples of light oil were successfully recovered from two Late
Cretaceous turbidite sands. The partners to the Georgetown PPL are
Repsol Exploración S.A (15%), as operator, along with YPF Guyana
Limited (30%), Tullow Oil plc (30%) and CGX Resources Inc. (25%).

Kerry Sully, President and CEO stated, "Based on hydrocarbons recovered
during the drilling of Jaguar-1, CGX is confident that a new well
targeting the same prospect would hold significant promise and is
therefore committed to seek a re-drill utilizing a new well design."

Commenting on the Company's plans in the GuyanaSuriname basin, Suresh
Narine, Chairman, reiterated CGX's near-term goals stating, "In
addition to our commitment well on the Corentyne Block, we are planning
a 3D seismic program later this fall with our ultimate goal being to
commit to a rig for a three to five well program. Added to this would
be the re-drill of the Late Cretaceous target addressed by the Jaguar-1
well."

CGX is a Canadian-based oil and gas exploration company focused on the
exploration of oil in the Guyana-Suriname Basin, an area in which the
United States Geological Survey estimated a Pmean oil resource
potential of 13.8 billion barrels in their Assessment of Undiscovered
Conventional Oil and Gas Resources of South America and the Caribbean,
2012. CGX is managed by a team of experienced oil and gas and finance
professionals from Guyana, Canada, the United States and the United
Kingdom.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Forward-Looking Statements:

This press release contains forward-looking statements. More
particularly, this press release contains statements that include, but
are not limited to, the timing of the advance and related security, the
closing of the private placement, the anticipated use of proceeds and
the receipt of the required shareholder and stock exchange approvals.
Forward-looking statements are frequently characterized by words such
as "plan", "expect", "project", "intend", "believe", "anticipate",
"estimate", "may", "will", "would", "potential", "proposed" and other
similar words, or statements that certain events or conditions "may" or
"will" occur.

The forward-looking statements are based on certain key expectations and
assumptions made by CGX. Although CGX believes that the expectations
and assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the forward-looking
statements because CGX can give no assurance that they will prove to be
correct. Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. In addition
to other risks that may affect the forward-looking statements in this
press release and those set out in CGX's management discussion and
analysis of the financial condition and results of operations for the
year ended December 31, 2011 and the three month period ended March 31,
2012 as well as the Company's Annual Information Form dated and filed
on July 13, 2012.

The forward-looking statements contained in this press release are made
as of the date hereof and CGX undertakes no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.